Hain: Gibraltar deal not inevitable

Britain and Spain are still far from reaching an agreement on the disputed territory of Gibraltar, the Europe minister, Peter Hain, told MPs today as Tony Blair held talks with his Spanish counterpart, Jose Maria Aznar, in Downing Street.

During a speech in Westminster Hall which may help calm fears on the Rock about a secret agreement between the two governments, Mr Hain said that the foreign secretary, Jack Straw, would make a Commons statement about whether a deal had been struck with the Spanish government.

"We have long said there is nothing inevitable about this," he said.

"A solution to the Gibraltar dispute has eluded Britain and Spain for over 300 years - it may continue to allude us. We may have to wait a while yet."

But he added: "No agreement is better than a bad agreement."

There has been widespread speculation that the sovereignty discussions, which were expected to conclude by July, were in crisis after both sides met in Downing Street last month.

The Tories have called for the UK to pull out of the talks and Gibraltar's chief minister, Peter Caruana, has refused to take part in them.

During the debate, Mr Hain told MPs: "We never thought this was going to be easy - it hasn't been.

"There remains serious differences between us."

But he dismissed claims that the government was betraying the right of Gibraltarians to self-determination as the final decision would be put to a referendum.

"We are not selling out Gibraltar. No deal will be implemented unless the people of Gibraltar agree in a referendum.

"We are not doing deals over the heads of the Gibraltarians. We offered the chief minister, and through him the people of Gibraltar, a place at the [negotiating] table from the start.

"We are not hiding an already done deal. There may not be one. There will not be one unless it meets our bottom lines.

"We are not giving Gibraltar away to Spain. There has never been any question of doing so."

He said the negotiations were aimed at resolving a "festering" dispute which was damaging both Britain's and Gibraltar's interests. It would help the territory enjoy "greater self-government and the opportunity to reap the full benefits of normal coexistence with the wider region".

He added: "But we would rather have no deal than a bad deal.

"The only good deal is one that advances both British interests and Gibraltar's interests - we will not sign up to anything else.

"The final decision is Gibraltar's," he said.

But both Labour and Tory MPs attacked the government for ignoring the "voice of Gibraltar" and urged for the entire process to be "ditched".

Veteran Labour MP Tom Cox (Tooting) said the Foreign Office was failing to listen to the Gibraltarian message - "leave us alone".

"The rights of Gibraltar and the voice of the people of Gibraltar are being ignored," he warned ministers.

"They want nothing to do with the proposals of the British or Spanish governments concerning their future."

The government's handling of the Gibraltar dispute was damaging politics in Britain as well, Mr Cox stressed.

"Do you really believe that what we are discussing this morning, the deep concern we have, that this will enhance in the minds of the electorate of this country a great trust in politicians when they clearly see and believe ... that this matter is being driven through by the British and Spanish governments irrespective of what the people of Gibraltar have clearly said?"

Tory Andrew Rosindell (Romford) called for the "entire ill-conceived process" to be ditched, adding: "The Gibraltar people are as British as the rest of us. Gibraltar is British and its people want to remain so."

The people of the country had already spoken during a demonstration on the Rock in which 90% of the 30,000 population rallied against the Anglo-Spanish talks, he said.

"You are trampling over people's democratic right to decide for themselves," he told Mr Hain.

"Nearly everyone on the rock of Gibraltar wants to remain British, if not everybody there."

Fellow Conservative Mark Francois (Rayleigh) also attacked the talks for having little to do with the "welfare of people who live on the Rock".

The discussions were about gaining Spanish cooperation during EU meetings and conferences, he claimed.

"This government initiative has gone on for long enough.

"It is a child that has no parents and this orphan should finally be laid to rest," he said.